State of North Carolina
Office of the Governor
Beverly Eaves Perdue
Governor
Office of the Governor · Phone 919)733-4240 · Fax 919)733-2120 · Email: governor.office@nc.gov

Fellow state employees,

As you know, families and businesses across North Carolina are facing the effects of the
national economic crisis. While I am confident that North Carolina can meet the
challenges ahead, the current crisis has not spared state government. Since I became
governor in January, I have taken aggressive steps to meet my constitutional obligation to
balance the budget.

This week I received information that the budget shortfall for the current fiscal year will
exceed $3 billion. This news forced me to implement measures I had hoped to avoid.
Today I signed an executive order announcing a flexible furlough plan for teachers and
state employees – a decision I made after careful thought and consideration of all the
options available to me for balancing the state’s budget.

All teachers’ and state employees’ compensation will be reduced by an annualized
amount equivalent to 0.5 percent for the remainder of the fiscal year. In return, each
employee will receive 10 hours of flexible time off. I have asked the General Assembly
to pass legislation ensuring that your unused leave, service credit and health and
retirement benefits are held harmless, as well as any longevity pay for which you may be
eligible.

The commitment and dedication you show every day to your agencies and to your state
are much appreciated. I regret that circumstances force me to make this difficult decision.
I will ensure that North Carolina continues to pay its bills and provide essential services
to our citizens. Working together, I know that we will get through these tough times and
position North Carolina for a bright future.

Sincerely,
Bev Perdue